Updated over 8 years ago on . Most recent reply
Non-Occupied Borrower Problem
I have kind of hit a wall. I am in the process of investing in my first 4-plex in Phoenix, AZ. I was planing to finance it with an FHA loan with 3.5% down. My dad was going to be a co-borrower and provide some of the down payment money. I know we qualify for a 3.5% down payment grant as well. I was planning on house hacking and living in one of the units so we could get the owner-occupied loan rate... BUT, after talking to a lender I found out that because my dad will be one of the borrowers and will not be a resident it would be consider a Non-Occupied Borrower Loan where we would have to put down 20%. I wanted to know if there are any other lenders out there that would finance with the 3.5% down payment, or any other option we would have. All of the properties I am looking at have DCR of 1.25. I appreciate any help offered. Thank You.
Most Popular Reply
I hate to be the wet blanket, but....
Has anyone given any consideration to the possibility that if they lack the income to make the payments, even when rental income is being counted, that maybe it's not the best idea?